Question:

Which of the following is not true about ADR?

A.

an adr is a u.s. dollar denominated form of equity ownership in a non-u.s. company.

B.

adrs may be used in public or private markets inside or outside us.

C.

adrs do not eliminate the currency risk associated with an investment in a nonu.s. company.

D.

adr represents the foreign shares of the company held on deposit by a custodian bank in the company\s home country. ad

Answer» b. adrs may be used in public or private markets inside or outside us.

Question:

Devise adopted to make profit out of the difference in prices of a security in twodifferent markets is called ——————‐.

A.

arbitrage

B.

margin trading

C.

call option

D.

none of these

Answer» a. arbitrage

Question:

A stock market index ————-.

A.

shows trends in the market

B.

provides weights to shares

C.

show the volume of trade in market

D.

shows transactions of shares

Answer» a. shows trends in the market

Question:

The holders of which instrument are members of the company and have voting rights?

A.

commercial paper

B.

treasury bill

C.

debenture

D.

equity

Answer» d. equity

Question:

The Nifty consists of —————–.

A.

30 stocks

B.

25 stocks

C.

50 stocks

D.

100 stocks

Answer» c. 50 stocks

Question:

Buying and selling of shares can be done through a ————–

A.

depository

B.

bank

C.

stock exchange

D.

finance company

Answer» c. stock exchange